HB445ENROLLED
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THGP95-2
By Representatives Garrett, Baker
RFD: Ways and Means Education
First Read: 09-May-23
2023 Regular Session
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Enrolled, An Act,
Relating to economic development; to amend Section
40-18-417.4, Code of Alabama 1975, as amended by Act 2023-34
of the 2023 Regular Session; to amend Section 5 of Act 2023-34
of the 2023 Regular Session, now appearing as Sections
40-18-472 and 40-18-473, Code of Alabama 1975, to correct a
date referenced in the Growing Alabama Act; to clarify the tax
rebates under the Sweet Home Alabama Tourism Investment Act
for certain businesses for certified tourism destination
projects are only available for projects placed into service
after the effective date of this act; to amend Section 41-7-3,
Code of Alabama 1975 to include the Chairs of the Senate
Finance and Taxation Education Committee and Ways and Means
Education Committee and the ranking minority member of each
committee to the Tourism Advisory Board; and to amend Sections
41-10-47.03 and 41-10-47.04, Code of Alabama 1975, from
Section 1 of Act 2023-35 of the 2023 Regular Session, to align
rural population provisions of the Site Evaluation Economic
Development Strategy with the Jobs Act.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-18-417.4, Code of Alabama 1975,
as amended by Act 2023-34 of the 2023 Regular Session, is
amended to read as follows:
"§40-18-417.4
(a) A taxpayer is allowed a Growing Alabama Credit to
be applied against all of the following:
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(1) To offset the income taxes levied in this chapter,
or as an estimated tax payment of income taxes.
(2) To offset the state portion of the financial
institution excise tax levied in Chapter 16.
(3) To offset the insurance premium tax levied by
subsection (a) of Section 27-4A-3.
(4) To offset state license taxes levied by Article 2
of Chapter 21.
(b) In no event shall the Growing Alabama Credit cause
a taxpayer's tax liability to be reduced by more than 50
percent. Unused credits may be carried forward for no more
than five years.
(c) Growing Alabama Credits shall be granted to
taxpayers using an online system administered by the
Department of Revenue. The online system shall allow taxpayers
to agree to make a cash contribution to an economic
development organization which was approved by the Renewal of
Alabama Commission, as provided in Section 40-18-417.3. The
online system shall ensure that credits are not granted for
contributions to an economic development organization in
excess of the amounts approved by the Renewal of Alabama
Commission, as provided in Section 40-18-417.3.
(d) The cumulative amount of funding approved pursuant
to this section shall not exceed twenty million dollars
($20,000,000) in a calendar year for calendar years ending
prior to January 1, 2024, which amount would increase to
twenty-three million dollars ($23,000,000) for the calendar
year ending December 31, 2024, twenty-six million dollars
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($26,000,000) for the calendar year ending December 31, 2025,
twenty-nine million dollars ($29,000,000) for the calendar
year ending December 31, 2026, thirty-two million dollars
($32,000,000) for the calendar year ending December 31, 2027,
and thirty-five million dollars ($35,000,000) for calendar
year ending January 1December 31, 2028.
(e) The Renewal of Alabama Commission shall reserve at
least 25 percent of the amounts specified in subsection (d)
for projects located in targeted or jumpstart counties as
defined in Section 40-18-376.1. In the event applications are
not received and credits are not allocated for projects in
these areas by the close of the second quarter of the program
year, the funds may revert for allocations of other project
applications.
(f) To the extent that a Growing Alabama Credit is used
by a taxpayer, the taxpayer shall not be allowed any deduction
that would have otherwise been allowed for the taxpayer's
contribution. Credits may only be claimed by the donating
taxpayer and may not be assigned or transferred to any other
taxpayer. For purposes of this section, a donating taxpayer
includes a taxpayer who is a shareholder of an Alabama S
corporation or a partner or member of a subchapter K entity
that made a contribution to an economic development
organization which was approved by the Renewal of Alabama
Commission.
(g) The Department of Finance shall adopt rules to
ensure that the Growing Alabama Credit in no case would reduce
the distribution for the Alabama Special Mental Health Trust
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Fund by using any unencumbered funds."
Section 2. Section 5 of Act 2023-34 of the 2023 Regular
Session, now appearing as Sections 40-18-472 and 40-18-473,
Code of Alabama 1975, is amended to read as follows:
"§40-18-472
(a) In order for an applicant to be an approved
company, all of the following shall occur:
(1) For any applicant that proposes a certified tourism
destination project to be an approved company , the board shall
make allboth of the following findings:
a. That the project is in fact a certified tourism
destination project.
b. That the amount of tourism rebates sought are
exceeded by anticipated revenues for the state, including
income, property, business privilege, utility, gross receipts,
sales, and use tax revenues that are generated by the economic
activity resulting from the project.
(b) The Alabama Tourism Advisory Board shall review
qualifying projects meeting the criteria established pursuant
to Section 40-18-473 and approve eligible projects for tax
rebates. Upon a determination that all program requirements
are met, the board will issue the Alabama Tourism Advisory
Board Act Certificate. Each certificate shall include the
amount of the approved project costs, the maximum rebate
available, and the rebate term of 10 years with a five-year
carry forward from the completion date or the date on or which
five million dollars ($5,000,000) of the approved project
costs has been rebated to the applicant, whichever threshold
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is met first."
"§40-18-473
(a) A tax rebate from taxes generated within the
tourism destination attraction by the certified tourism
destination project over a 10-year period from the
commencement of operation , which must occur after the
effective date of the act adding this language, in the amount
of up to five million dollars ($5,000,000) may be claimed. No
approved company may receive more than one million dollars
($1,000,000) in tourism rebates in a calendar year.
(b) Tax rebates may carry forward for five years.
(c)(b)(1) The tax rebates authorized by this actarticle
are limited to an aggregate amount for all certified tourism
destination projects of ten million dollars ($10,000,000)
annually with 10 percent set aside annually for certified
tourism destination projects located in targeted or jumpstart
counties.
(2) An approved company with a certified tourism
destination project may be granted a tax rebate on any
combination of the state and local sales and use taxes,
lodging taxes, or other transactional taxes generated by or
arising within the tourism destination project after the
effective date of the act adding this language .
(3) An approved company shall have no obligation to
refund or otherwise return any amount of taxes authorized for
rebate to the persons from whom the taxes were collected.
(4) Rebates authorized under this article shall be for
up to 10 years, commencing on the date the tourism attraction
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opens for business , which must occur after the effective date
of the act adding this language, and begins to collect taxes
generated by, or arising within, the tourism destination
project.
(5) Tax rebates may be a combination of state and local
retail sales tax, state and local lodging taxes, and any other
taxes generated by, or arising within, the tourism destination
project after the effective date of the act adding this
language. The municipality or the taxing district where the
tourism destination project will be located must support and
approve the facility. The approval must be in the form of a
resolution of the governing authority acknowledging support of
the project and acknowledging that a portion no less than 20
percent of the tax rebates will be comprised of municipal
taxes.
(6) The Alabama Department of Revenue, in consultation
with the Alabama Tourism Department, shall adopt rules and
require the filing of a rebate form designed by the Department
of Revenue to reflect the intent of this article. To begin the
rebate process, once project phases open for business after
the effective date of the act adding this language , the
approved company must provide a listing of all sales tax
accounts and account numbers related to the project. The
Alabama Department of Revenue will provide these accounts and
will begin making the required diversions into the Tourism
Project Sales Tax Incentive Fund the month following
notification. Rebate payments from the fund will be made each
January and July to the approved company.
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(7) No tax rebate shall be granted to an approved
company during a tax year that the approved company is
simultaneously receiving any other state tax incentive
associated with any individual tourism attraction project.
(8) Any tax rebate shall be first applied to any
outstanding tax obligation of the approved company that is due
and payable to the state.
(9) Rebates under this article shall be made without
interest.
(10) Tax rebates authorized under this article are
transferrable to future owners of the qualifying tourism
destination project.
(11) The tax rebate allowed under this article shall be
effective beginning August 1, 2023, for projects placed into
service after the effective date of the act adding this
language and shall continue through July 31, 2028, unless
continued by an act of the Legislature.
(12) Tax rebates for certified tourism destination
projects are to be administered by the Alabama Department of
Revenue.
(c) Notwithstanding the ten million dollar
($10,000,000) annual cap on tax rebates allowed, the board may
approve an annual onetime designation of an additional two
million five hundred thousand dollars ($2,500,000) in tax
rebates for one project per calendar year with a minimum
capital investment amount of seventy-five million dollars
($75,000,000)."
Section 3. Section 41-7-3, Code of Alabama 1975, is
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amended to read as follows:
"§41-7-3
(a) There is established the Advisory Board to the
Alabama Tourism Department to advise and assist the director.
The board shall be composed of 2125 members who shall be
appointed as follows:
(1) Two members who shall be appointed by the Governor
from a list of three persons for each board position which
shall be submitted to the Governor by the Alabama Travel
Council, or its successor organization.
(2) Two members who shall be appointed by the Governor
from a list of three persons for each board position which
shall be submitted to the Governor by the Alabama Hospitality
Association, or its successor organization.
(3) Two members who shall be appointed by the Governor
from a list of three persons for each board position which
shall be submitted to the Governor by the Alabama Association
of Convention and Visitor Bureaus, or its successor
organization.
(4) Two members who shall be appointed by the Governor
from a list of three persons for each board position which
shall be submitted to the Governor from the Alabama Restaurant
Association, or its successor organization.
(5) Two members who shall be appointed by the Governor
from a list of three persons for each board position which
shall be submitted to the Governor from the Alabama
Cooperative Extension System who shall be representatives of
the private sector rural tourism industry.
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(6) Two members who shall be appointed by the Governor
from a list of three persons for each board position which
shall be submitted to the Governor from the Economic
Development Association of Alabama, or its successor
organization.
(7) Three members appointed by the Governor who are not
current full-time public officials or public employees, but
who are representatives of the private sector of the tourism
industry in Alabama.
(8) The Director of the Alabama State Parks who shall
serve as an ex officio member.
(9) The Director of the Alabama Historical Commission
who shall serve as an ex officio member.
(10) The Director of the Alabama State Council on the
Arts who shall serve as an ex officio member.
(11) The Director of the Alabama Cooperative Extension
Service who shall serve as an ex officio member.
(12) The Director of the Alabama Department of Public
Safety who shall serve as an ex officio member.
(13) The Director of the Alabama Department of
Transportation who shall serve as an ex officio member.
(14) The Chair of the Senate Finance and Taxation
Education Committee, the Chair of the House Ways and Means
Education Committee, and the ranking minority member of each
committee, or their designees.
(b) Ex officio members of the board shall be voting
members, but shall serve as a member of the board only as long
as the ex officio member holds his or her respective office.
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Each member not serving in an ex officio capacity shall be
appointed to a six-year term except for the initial
appointments of one of the members for each of the positions
designated in subsection (a), subdivisions (1) to (5),
inclusive, which shall be appointed to initial three-year
terms. Members shall serve until their successors are
appointed and qualified. Vacancies which occur other than by
expiration of the term shall be filled for the unexpired term
only.
(c) The members of the board shall serve without
compensation but shall be entitled to reimbursement for actual
and necessary expenses incurred in the performance of their
duties as members.
(d) The director shall be a nonvoting member of the
board.
(e) Members of the board shall be residents of the
State of Alabama, and to the extent possible, appointments to
the board shall be made from all geographic regions of the
State of Alabama in order to promote economic diversity from
throughout the state. Appointments to the board shall include
Black and other minority representation, and to the extent
possible, the appointments shall reflect the percentage of
minority population of the state and the gender and urban and
rural diversity of the state. Those members of the board not
serving in an ex officio capacity shall be actively employed
in the tourism industry throughout the term of their
appointment, and if the member ceases to be so employed, that
person shall immediately cease to be a member of the board,
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and the appointing authority shall promptly appoint a new
member in the manner consistent with the initial appointment
procedure to fill the remainder of the term.
(f) All members shall be notified in writing of the
time and place of any regular or special meeting. Any member
who misses four consecutive regularly scheduled meetings shall
immediately cease to be a member of the board, and the
appointing authority shall promptly appoint a new member in
the manner consistent with the initial appointment procedure
to fill the remainder of the term. Such meeting requirements
shall not apply to the director nor to ex officio members.
(g) The board shall meet at least quarterly, and shall
perform the following duties:
(1) Serve as a body to advise the director and private
persons on the development and implementation of state
policies and programs relating to tourism and recreation and
to assist in the coordination of these activities.
(2) Adopt bylaws, elect officers, including a
chairperson, and establish procedures for its operation.
(3) Advise and review marketing and annual advertising
plans developed by the department. The comprehensive marketing
plan shall be directed toward the accomplishment of at least
the following purposes:
a. Maximizing the return on public and private
investment and tourism.
b. Encouraging longer stays by visitors to Alabama.
c. Assisting local entities in attracting conferences
and conventions.
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d. Reducing season fluctuations in travel and tourist
related industries.
e. Encouraging visitors to be destination oriented in
this state.
f. Encouraging visitors from foreign countries to visit
Alabama.
g. Encouraging Alabamians to vacation in Alabama.
(h) Seek and review the views of all levels of
government and the private sector with respect to state
programs and policies for the promotion and assistance of
tourism.
(i) Cooperate and provide expertise for communities and
tourism marketing associations in the development and
promotion of their tourism attractions and businesses.
(j) Establish working committees to advise the
department with specific areas of operation including
marketing, advertising, regional issues, administration of
grant and co-op programs, and product and service
development."
Section 4. Sections 41-10-47.03 and 41-10-47.04, Code
of Alabama 1975, are amended to read as follows:
"§41-10-47.03
(a) Any local economic development organization may
apply to the authority for a site assessment grant.
(b) Before making a site assessment grant, the
authority shall make all of the following findings:
(1) The site is owned by a local economic development
organization, or a local economic development organization has
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an option to purchase the site.
(2) The site is at least 50 acres.
(3) The application includes proof that the grant funds
that are approved by the authority will be matched by funds on
hand with, or contingently committed to, the applicant such
that one of the following is true:
a. If the site is located in a targeted county with a
population of less than 12,000, for every dollar of grant
funds, the applicant will contribute twenty-five cents ($0.25)
of additional funds.
b. If the site is located in a targeted county with a
population of 12,000 or greater but less than 50,00060,000,
for every dollar of grant funds, the applicant will contribute
fifty cents ($0.50) of additional funds.
c. If the site is located in a county with a population
of 50,00060,000 or greater but less than 150,000, for every
dollar of grant funds, the applicant will contribute
seventy-five cents ($0.75) of additional funds.
d. If the site is located in a county with a
population of 150,000 or greater, for every dollar of grant
funds, the applicant will contribute one dollar ($1) of
additional funds.
(c) The authority may impose additional requirements
with regard to the sites, including, but not limited to,
environmental and geotechnical matters, as well as utility
related and transportation related issues.
(d) Each applicant must enter into a project agreement
with the authority to establish the terms and conditions of
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the site assessment grant."
"§41-10-47.04
(a) Any local economic development organization may
apply to the authority for a site development grant.
(b) Before making a site development grant, the
authority shall make both of the following findings:
(1) The site is comprised of at least 75 contiguous
acres, provided that in addition to the 75 contiguous acres,
other proximate but noncontiguous property may be a part of
the site.
(2) The application includes proof that the grant funds
that are approved by the authority will be matched by funds on
hand with, or contingently committed to, the applicant such
that one of the following is true:
a. If the site is located in a targeted county with a
population of less than 12,000, for every dollar of grant
funds, the applicant will contribute twenty-five cents ($0.25)
of additional funds.
b. If the site is located in a targeted county with a
population of 12,000 or greater but less than 50,00060,000,
for every dollar of grant funds, the applicant will contribute
fifty cents ($0.50) of additional funds.
c. If the site is located in a county with a population
of 50,00060,000 or greater but less than 150,000, for every
dollar of grant funds, the applicant will contribute
seventy-five cents ($0.75) of additional funds.
d. If the site is located in a county with a population
of 150,000 or greater, for every dollar of grant funds, the
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applicant will contribute one dollar ($1) of additional funds.
(c) The authority may impose additional requirements
with regard to the sites, including, but not limited to,
environmental and geotechnical matters, as well as utility
related and transportation related issues.
(d) Each applicantmust enter into a project agreement
with the authority to establish the terms and conditions of
the site development grant."
Section 5. This act shall become effective immediately
following its passage and approval by the Governor, or its
otherwise becoming law .
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________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 25-May-23.
John Treadwell
Clerk
Senate 01-Jun-23 Passed
House 01-Jun-23 Concurred in
Senate Amendment
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